Trade Idea : USD/CHF – Sell at 0.9850 or buy at 0.9700

USD/CHF – 0.9755

Most recent candlesticks pattern : N/A

Trend                                    : Near term down

Tenkan-Sen level                  : 0.9741

Kijun-Sen level                    : 0.9764

Ichimoku cloud top                 : 0.9805

Ichimoku cloud bottom              : 0.9795

Original strategy :

Sell at 0.9850, Target: 0.9750, Stop: 0.9885

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 0.9850, Target: 0.9725, Stop: 0.9885

O.C.O.

Buy at 0.9700, Target: 0.9800, Stop: 0.9665

Position : –

Target :  –

Stop : –

Although dollar has recovered after finding support at 0.9723, reckon 0.9790-00 would limit upside and near term downside risk remains for recent selloff to extend one more decline to 0.9700, however, oversold condition should prevent sharp fall below there and bring rebound later, above 0.9800 would bring recovery to 0.9825 but renewed selling interest should emerge around previous resistance at 0.9851, bring another decline later. 

In view of this, whilst we are still looking to sell dollar on recovery, we are inclined to buy dollar on next fall as 0.9700 should limit downside. Below 0.9670-75 would risk weakness to 0.9650 but still reckon downside would be limited to 0.9620-25 and bring another rebound later.